Since the start of the economic reform process in the 70s China has been able to generate a large volume of investment, both from domestic and foreign sources. This high volume of investment was instrumental in sustaining strong economic growth and related improvements in living standards. However, this growth model is not longer sustainable. Returns on investment have fallen, excessive capacity is plaguing several sectors and the negative externalities have been very onerous, notably in terms of environmental degradation and rising income inequality. A key objective of the Chinese government is therefore to move the economy towards a more balanced, sustainable and inclusive growth path as envisaged by the 13th Five-Year Plan. In this adjustment process, the country is seeking new approaches for smarter, greener and more productive investment. This will require mutually reinforcing reforms to improve investment planning, rebalance the role of government and market forces, mainstream responsible business conduct and encourage greater private investment, especially in green infrastructure. China’s growing role as an outward investor may act as catalyser for the required reforms at home, as Chinese private and state-owned enterprises have to adopt internationally recognised practices and standards .

Lithuania has made remarkable economic and social progress, but further policy reforms will be necessary to ensure a more productive and inclusive economy, according to the first-ever OECD Economic Assessment of Lithuania.

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Countries that implement stringent environmental policies do not lose export competitiveness when compared against countries with more moderate regulations, according to a new OECD study that examines trade in manufactured goods between advanced and emerging economies.

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It is very important to put this study in context. During the past six years, Greece has gone through an unprecedented and very painful contraction. It is hard to think of any other OECD country that has experienced such economic hardship in recent times.

Using a gravity model of bilateral trade in manufacturing industries for selected OECD and BRIICS countries over 1990s-2000s, this paper studies how exports are related to national environmental policies.

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Boosting economic growth and investment to create jobs, improve the stability of public finances and provide an effective social safety net are crucial to help Greece recover from the profound social costs of the economic crisis, says the OECD in its latest report.

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This series helps countries to identify and overcome binding constraints to achieving higher levels of well-being and more equitable and sustainable growth. The Development Pathways are based on Multi-dimensional Country Reviews, which take into account policy interactions and the country-specific policy environment through three phases. The first phase comprises an initial assessment of the constraints to development. The second phase involves an in-depth analysis of the main issues resulting in detailed policy recommendations. The third phase is designed to move from paper to action and to support government efforts in developing strategies and implementing policy recommendations.